Canaan Inc. talked about the purchase and stated that the aggregate operating hash rate of the 4,000 machines is 272 petahash per second (PH/s). Canaan further mentioned that it expects to ship the machines to HIVE Blockchain in two batches over the next 60 days – 2,000 machines each in August and September.
The order is an addition to HIVE’s previous order made earlier this year for 6,400 Canaan AvalonMiner 1246 Miners with an aggregate operating hash power of 576 PH/s.
Currently, HIVE has a total Bitcoin operating hash rate of 925 PH/s. HIVE expects its hash rate to reach one exahash per second (EH/s) by August with the additional acquisition of mining machines.
It is not hard to understand why HIVE has placed orders to expand its crypto mining operations. The Vancouver-based firm has other mining facilities in Iceland and Sweden. The crypto mining firm wants to be successful in enhancing its crypto production and making more revenues.
HIVE went public in 2017 and is currently listed in the Toronto exchange, Nasdaq, and Frankfurt stock exchange. The crypto mining firm generates a daily income of $550,000 from its Bitcoin and Ethereum mining operations, which translates to approximately $200 million annual revenue. The company stated that it plans to continue using cash flow to buy more machines to increase its revenues.
Crypto Mining Machines See Surging Demand
Driven by the continuous rise of crypto prices, major mining machine manufacturers have had a tight production schedule with orders valued at hundreds of millions of dollars coming in, mainly from Canada and the US.
The increasing demand for Bitcoins has led to a surge in orders from crypto mining machines, and Chinese firms are taking the lead in global supply chain production.
Canaan Inc., one of the world’s biggest mining hardware manufacturers, has seen an increase in orders since last year, with Central Asia and North America being the major sources of the surge in demand.
In early this year, Canaan Inc. signed an advance order for 6,000 mining machines with Core Scientific, a US crypto mining giant, and 6,400 mining machines with HIVE Blockchain, a Canadian-based mining firm.
The clients are mostly overseas-listed firms, fund-backed companies, and multinational companies.
Bitmain, another China’s Bitcoin mining hardware manufacturer, also confirmed the surging demand, stating that most of its mining machines have been sold out and is working on more production.
Market players believe that the key reason for the recent increased demand for Bitcoin and other cryptocurrencies are the excess liquidity created by ultra-loose fiscal and monetary policies across the world.
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